Presidential Executive Order 9 (EO9) on Direct Remittance of Oil and Gas Revenues to the Federation Account

What Is This Policy?

Executive Order 9 (EO9) is a presidential directive signed by President Bola Tinubu on February 13, 2026, requiring NNPC Limited to remit all oil and gas revenues directly to the Federation Account without retaining management fees, frontier exploration fund deductions, or other charges previously deducted under the Petroleum Industry Act 2021. It is designed to restore constitutional revenue entitlements to all three tiers of government and eliminate fiscal leakages from the upstream oil and gas sector.

Who Does It Target?

NNPC Limited, which previously deducted a 30% management fee and 30% Frontier Exploration Fund from profit oil and gas before remitting to the Federation Account Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which must now redirect gas flaring penalty revenues to the Federation Account Federal, state, and local governments as the constitutional beneficiaries of Federation Account distributions through FAAC Investors and industry analysts evaluating the fiscal and commercial implications for NNPCL and upstream joint venture operations

What Does It Aim to Achieve?

Restore 100% of profit oil and gas revenues to the Federation Account, increasing the monthly FAAC pool available to all three tiers of government Eliminate the 30% management fee that NNPCL previously deducted from production sharing and risk service contract revenues Abolish the separate Frontier Exploration Fund account and transfer the 30% previously ring-fenced for speculative exploration into the Federation Account Redirect gas flaring penalty revenues from the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to the Federation Account

Key Features

Management Fee Abolition: NNPCL's 30% management fee on profit oil and gas from production sharing, profit sharing, and risk service contracts is abolished with immediate effect Frontier Exploration Fund Transfer: The 30% of profit oil and gas previously retained as the Frontier Exploration Fund under PIA Sections 9(4) and 9(5) is now paid directly into the Federation Account Gas Flaring Penalty Redirect: NUPRC must pay all gas flaring penalty proceeds directly into the Federation Account instead of the MDGIF; MDGIF expenditure subject to public procurement laws Implementation Committee: A presidential implementation committee monitors execution, chaired by the Minister of Finance, with AGF, Budget Minister, and NNPCL oversight Constitutional Anchoring: EO9 is anchored on Sections 5 and 44(3) of the Constitution, which vest all mineral resources in the Federal Government on behalf of the Federation PIA Review: President Tinubu has announced a comprehensive review of the PIA's fiscal provisions in consultation with stakeholders to address identified structural anomalies

Current Status

Presidential Executive Order 9 is in force, as it was signed by President Bola Tinubu on February 13, 2026, and is described as an active directive.

Legal Framework

Constitution of the Federal Republic of Nigeria 1999 (Section 5, presidential executive powers); Petroleum Industry Act 2021; Finance (Control and Management) Act; Fiscal Responsibility Act 2007; Central Bank of Nigeria Act